Like other global currencies Chinese Yuan has also drifted significantly in last few months. Yuan has reduced by 10% against US dollar. Similar scenario is witnessed by Lira of Turkey and Rupees of India.
Plunging of Yuan has compelled the importers to look for domestic market to cover up their requirements. A weak currency makes US dollar-denominated imports more expensive. As China is a major importer of petrochemical products in Asia, its absence translates to some downward pressure on regional markets. But firming Chinese domestic markets due to a sudden increase in demand as imports dwindle, also buoy up regional prices of some petrochemical products.
The major petrochemical products like Benzene and Methanol are falling shortage on the ports thus prices will soon reach the high marks in the next few weeks.
New expansions in the US and Middle East are not expected to release many cargoes into the spot market before the end of this year. Methanol demand from the coal/methanol-to-olefins (C/MTO) sector in the country is expected to be healthy during the next two to three months.
